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Private compnay dividend

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This query is : Resolved

Quick Summary

Directors of a private company are eligible to receive dividends if they are also shareholders. The dividend received is then taxable based on the individual's applicable income tax slab rates. Eligibility hinges on being a shareholder and the company declaring a dividend.

K.Devan

K.Devan (Querist)

14 February 2025 Dear Sir
Priva te company directors are eligible for diviedend . If eligible what will be the tax for the dividend .
Thank you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 February 2025 It's taxable based on applicable slab rates of the concerned person.

Nikhil Kaushik

Nikhil Kaushik (Expert)

15 February 2025 shareholders are eligible for receipt of dividend if declared. If the directors are shareholders too, then yes, they are eligible to receive the dividend corresponding to the shares they hold.

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